Stabilus SE — Earnings Release 2017

May 15, 2017

Q2 FY2017 RESULTS

May 15, 2017

Disclaimer

Stabilus S.A. (the "Company", later "Stabilus") has prepared this presentation solely for your information. It should not be treated as giving investment advice. Neither the Company, nor any of its directors, officers, employees, direct or indirect shareholders and advisors nor any other person shall have any liability whatsoever for any direct or indirect losses arising from any use of this presentation.

While the Company has taken all reasonable care to ensure that the facts stated in this presentation are accurate and that the opinions contained in it are fair and reasonable, this presentation is selective in nature. Any opinions expressed in this presentation are subject to change without notice and neither the Company nor any other person is under any obligation to update or keep current the information contained in this presentation. Where this presentation quotes any information or statistics from any external source, you should not interpret that the Company has adopted or endorsed such information or statistics as being accurate. This presentation contains forward-looking statements, which involve risks, uncertainties and assumptions that could cause actual results, performance or events to differ materially from those described in, or expressed or implied by, such statements. These statements reflect the Company's current knowledge and its expectations and projections about future events and may be identified by the context of such statements or words such as "anticipate," "believe", "estimate", "expect", "intend", "plan", "project" and "target". No obligation is assumed to update any such statement.

Agenda

• 1. Financial highlights
• 1. Results by region
• 1. Results by market
• 1. Outlook
• 1. Appendix

Agenda

1. Financial highlights

Q2 FY2017 Highlights

Fiscal year-end September

Revenue	Revenue up by 35.4% to €244.9m (+€64.0m vs. Q2 FY16) Growth in all regions with NAFTA (+37.6%), Europe (+35.4%) as well as Asia / Pacific and RoW (+26.9%) Growth in Powerise (+36.1%), Capital Goods (+25.2%) and Gas Spring (+13.1%)
Adj. EBIT	Adj. EBIT up by 53.6% to €38.4m (+€13.4m vs. Q2 FY16) Adj. EBIT margin at 15.7% (vs. Q2 FY16 margin of 13.8%)
Profit	Profit after tax up by 35.2% to €14.6m (+€3.8m vs. Q2 FY16) Profit margin at 6.0% (vs. Q2 FY16 margin of 6.0%)
Net leverage ratio	Net leverage ratio1 at 2.0x, pro-forma2 at approx. 1.9x (vs. 2.5x and pro-forma2 2.1x end FY2016) Net financial debt at €324.5m; €2.5m redemption of senior facilities in Q2 FY17
Outlook	FY2017 revenue guidance confirmed: €865m assuming US\$/€ avg. rate in FY17 of 1.15 \$/€ or €880m assuming 1.10 \$/€ FY2017 adj. EBIT margin guidance increased from 13%-14% to 14%-15%.

Note:

¹ Net leverage ratio = net financial debt / adj. EBITDA LTM. Net financial debt defined as principal amount of senior facilities less cash.

² Pro-forma, i.e. considering earnings of acquired companies. Adj. EBITDA LTM: €159.7m + €6.8m (1/4 of €27.0m) = €166.5m.

Stabilus shows strong operating performance in Q2 FY2017 (y-o-y)

Note: FX = currency effect resulting from translation of NAFTA revenue (w/o NC) from USD to EUR. Avg. fx rate of 1.07\$/€ in Q2 FY17 versus 1.10\$/€ in Q2 FY16. NC = contribution of 'new companies' ACE, Hahn Gasfedern, Fabreeka / Tech Products (acquired in June 2016). ¹FCF = cash flow from operating activities plus cash flow from investing activities. See appendix for further details. ² Adjustments for pension interest charges in EBIT are discontinued from Q1 FY17 on, i.e. there is no adjustment for €0.3m pension interest in Q2 FY17. For comparison reasons, the Q2 FY16 adj. EBIT was reduced in this presentation by €0.3m (the Q2 FY16 pension interest).

Stabilus shows strong operating performance in H1 FY2017 (y-o-y)

Note: FX = currency effect resulting from translation of NAFTA revenue (w/o NC) from USD to EUR. Avg. fx rate of 1.07\$/€ in H1 FY17 versus 1.10\$/€ in H1 FY16. NC = contribution of 'new companies' ACE, Hahn Gasfedern, Fabreeka / Tech Products (acquired in June 2016). ¹FCF = cash flow from operating activities plus cash flow from investing activities. See appendix for further details. ² Adjustments for pension interest charges in EBIT are discontinued from Q1 FY17 on, i.e. there is no adjustment for €0.6m pension interest in H1 FY17. For comparison reasons, the H1 FY16 adj. EBIT was reduced in this presentation by €0.6m (the H1 FY16 pension interest).

1.

Agenda

1. Results by region

Q2 FY2017 revenue and adj. EBIT growth – by region (y-o-y)

Note: Stabilus fiscal year-end is September. Numbers rounded to one decimal. Due to rounding, numbers presented may not add up precisely to the totals provided. ¹ Billed-from view, without intersegment revenue.

² Adjustments for pension interest charges in EBIT are discontinued from Q1 FY17 on, i.e. there is no adjustment for €0.3m pension interest in Q2 FY17. For comparison reasons, the Q2 FY16 adj. EBIT was reduced in this presentation by €0.3m (the Q2 FY16 pension interest).

H1 FY2017 revenue and adj. EBIT growth – by region (y-o-y)

Note: Stabilus fiscal year-end is September. Numbers rounded to one decimal. Due to rounding, numbers presented may not add up precisely to the totals provided. ¹ Billed-from view, without intersegment revenue.

² Adjustments for pension interest charges in EBIT are discontinued from Q1 FY17 on, i.e. there is no adjustment for €0.6m pension interest in H1 FY17. For comparison reasons, the H1 FY16 adj. EBIT was reduced in this presentation by €0.6m (the H1 FY16 pension interest).

NAFTA

• NAFTA car production in Q2 FY17 at 4.5m units, i.e. +1.6% vs. Q2 FY16
• NAFTA's revenue growth (+€25.6m or +37.6%) is primarily driven by our Powerise business: Powerise revenue increased by 43.2% to €37.8m in Q2 FY17 (vs. €26.4m in Q2 FY16)
• Excluding the contribution of new companies (€9.7m) and \$/€ currency translation effect (€2.8m), NAFTA's revenue increased by 19.2% y/y
• Adj. EBIT increased by 73.6% (38.5% not considering the new companies)
• Adj. EBIT margin of 'old companies' improved from 13.4% to 15.5% (pre fx related revenue change)

Note: Stabilus fiscal year-end is September. ¹ External revenue only. FX = currency effect resulting from translation of NAFTA revenue (w/o NC) from USD to EUR. Avg. fx rate of 1.07\$/€ in Q2 FY17 versus 1.10\$/€ in Q2 FY16. NC = contribution of 'new companies' ACE, Hahn Gasfedern, Fabreeka / Tech Products (acquired in June 2016).

Europe

• Car production in Q2 FY17 at 5.9m units, i.e. +6.6% vs. Q2 FY16
• Europe's revenue growth (+€33.0m or +35.4% y/y) is primarily driven by our Powerise business: Powerise revenue increased by 26.3% to €27.4m (Q2 FY16: €21.7m)
• Excluding the contribution of new companies (€20.9m), Europe's revenue grew by 13.0% y/y
• Adj. EBIT increased by 47.7% (12.9% not considering the new companies)

Note: Stabilus fiscal year-end is September.

¹ External revenue only. ² Adjustments for pension interest charges in EBIT are discontinued from Q1 FY17 on, i.e. there is no adjustment for €0.3m pension interest in Q2 FY17. For comparison reasons, the Q2 FY16 adj. EBIT was reduced in this presentation by €0.3m (Q2 FY16 pension interest).

NC = contribution of 'new companies' ACE, Hahn Gasfedern, Fabreeka / Tech Products (acquired in June 2016).

Asia / Pacific and RoW

• Asia/Pacific and RoW car production in Q2 FY17 at 13.6m units, i.e. +4.0% vs. Q2 FY16 (China: +2.9%, Japan/Korea: +3.3%, South America: +12.0%)
• Asia/ Pacific and RoW's revenue growth (+€5.3m or +26.9% y/y) is primarily driven by our Automotive Gas Spring business
• Excluding the contribution of new companies (€1.0m), Asia/Pacific and RoW's revenue grew by 21.8% y/y
• Adj. EBIT increased by 23.1% (19.2% not considering the new companies)

Note: Stabilus fiscal year-end is September.

¹ External revenue only. NC = contribution of 'new companies' ACE, Hahn Gasfedern, Fabreeka / Tech Products (acquired in June 2016).

Agenda

1. 1.

4.

5.

1. Results by market

Q2 FY2017 revenue growth – by business (y-o-y)

Note: Stabilus fiscal year-end is September.

¹Industrial including Capital Goods, Vibration & Velocity Control and Commercial Furniture (former Swivel Chair) revenue.

Q2 FY2017 revenue growth – Automotive business (y-o-y)

• Global car production in Q2 FY17 up to 24.0m (+4.2% vs. 23.0m in Q2 FY16)
• Automotive revenue increased by 21.7% (20.0% without \$/€ currency translation effect)
• Continuing consumer trend towards SUV's supports automotive revenue development
• Automotive Gas Spring revenue increased by 13.1% (11.9% without \$/€ currency translation effect)
• 36.1% growth (33.6% without \$/€ currency translation effect) in Powerise reflects production ramp-ups and new product launches across various OEMs since Q2 FY16

Note: Stabilus fiscal year-end is September.

FX = currency effect resulting from translation of NAFTA revenue (w/o NC) from USD to EUR. Avg. fx rate of 1.07\$/€ in Q2 FY17 versus 1.10\$/€ in Q2 FY16.

NC = contribution of 'new companies' ACE, Hahn Gasfedern, Fabreeka / Tech Products (acquired in June 2016).

OC = contribution of 'old companies', excluding \$/€ currency conversion effect.

Q2 FY2017 revenue growth – Industrial business (y-o-y)

• Revenue contribution of new companies in Q2 FY17:
• Hahn Gasfedern (part of Capital Goods unit): €6.4m
• ACE, Fabreeka / Tech Products (new business unit Vibration & Velocity Control) : €25.2m
• Growth in Capital Goods business at 25.2%, excluding contribution of Hahn Gasfedern and \$/€ currency translation effect at 9.5%
• Commercial furniture market is softer in the y-o-y view

Note: Stabilus fiscal year-end is September.

FX = currency effect resulting from translation of NAFTA revenue (w/o NC) from USD to EUR. Avg. fx rate of 1.07\$/€ in Q2 FY17 versus 1.10\$/€ in Q2 FY16.

NC = contribution of 'new companies' ACE, Hahn Gasfedern, Fabreeka / Tech Products (acquired in June 2016).

OC = contribution of 'old companies', excluding \$/€ currency conversion effect.

Agenda

1. Outlook

5.

Outlook FY2017: Financial performance

	FY2016 Actual	FY2017 Guidance
Revenue	€737.5m	€865m @ 1.15 \$/€ / €880m @ €1.10 \$/€
% Growth	20.6% (14.2% organic)	~17% / ~19%
% Adj. EBIT margin	13.4%	14%-15%

Comments

• On track to deliver another record year, aiming for ambitious revenue and EBIT targets
• Powerise continues to be a clear growth driver
• Revenue guidance for FY2017: €865m with US\$/€ avg. fx rate assumption for FY2017 of 1.15 \$/€
• • €15m to €880m at 1.10 \$/€
• €14m to €851m at 1.20 \$/€
• Strong Q2 results give us confidence to increase FY2017 adj. EBIT margin guidance to 14% 15%

Agenda

1. Appendix

Q2 FY2017 P&L overview (3M ended March 31, 2017)

P&L (€m)
	Q2 FY2016 Actual	Q2 FY2017 Actual	Change	% change
Revenue	180.9	244.9	64.0	35.4%
COGS	(133.9)	(169.7)	(35.8)	26.7%
Gross Profit	47.0	75.2	28.2	60.0%
% margin	26.0%	30.7%
R&D	(7.2)	(10.7)	(3.5)	48.6%
S&M	(11.7)	(20.6)	(8.9)	76.1%
G&A	(7.2)	(8.8)	(1.6)	22.2%
Other income/expenses	0.8	(1.7)	(2.5)	<(100.0)%
EBIT	21.8	33.4	11.6	53.2%
% margin	12.1%	13.6%
Adjustments1	3.1	5.1	2.0	64.5%
Adj. EBIT1	25.0	38.4	13.4	53.6%
% margin	13.8%	15.7%

Note: ¹ Adjustments for pension interest charges in EBIT are discontinued from Q1 FY17 on, i.e. there is no adjustment for €0.3m pension interest in Q2 FY17. For comparison reasons, the Q2 FY16 adj. EBIT was reduced in this presentation by €0.3m (Q2 FY16 pension interest).

H1 FY2017 P&L overview (6M ended March 31, 2017)

P&L (€m)
	H1 FY2016 Actual	H1 FY2017 Actual	Change	% change
Revenue	348.2	455.5	107.3	30.8%
COGS	(260.8)	(320.5)	(59.7)	22.9%
Gross Profit	87.4	135.1	47.7	54.6%
% margin	25.1%	29.7%
R&D	(13.0)	(18.6)	(5.6)	43.1%
S&M	(22.9)	(40.6)	(17.7)	77.3%
G&A	(13.8)	(17.8)	(4.0)	29.0%
Other income/expenses	1.6	(0.7)	(2.3)	<(100.0)%
EBIT	39.3	57.4	18.1	46.1%
% margin	11.3%	12.6%
Adjustments1	6.3	10.4	4.1	65.1%
Adj. EBIT1	45.7	67.8	22.1	48.4%
% margin	13.1%	14.9%

Note: ¹ Adjustments for pension interest charges in EBIT are discontinued from Q1 FY17 on, i.e. there is no adjustment for €0.6m pension interest in H1 FY17. For comparison reasons, the H1 FY16 adj. EBIT was reduced in this presentation by €0.6m (H1 FY16 pension interest).

Balance sheet overview

Balance sheet (€m)
	Sept 2016 Actual	March 2017 Actual	Change	% change
Property, plant and equipment	167.6	173.2	5.6	3.3%
Goodwill	197.5	200.1	2.6	1.3%
Other intangible assets	295.8	286.9	(8.9)	(3.0)%
Inventories	74.7	80.8	6.1	8.2%
Trade receivables	97.6	116.6	19.0	19.5%
Other assets	29.2	36.2	6.9	23.5%
Cash	75.0	68.0	(7.0)	(9.3)%
Total assets	937.4	961.8	24.4	2.6%
Equity incl. minorities	262.9	297.3	34.4	13.1%
Debt (incl. accrued interest)	401.1	389.1	(12.0)	(3.0)%
Pension plans and similar obligations	58.7	54.4	(4.3)	(7.3)%
Deferred tax liabilities	60.6	67.3	6.7	11.1%
Trade accounts payable	80.4	76.0	(4.4)	(5.5)%
Other liabilities	73.7	77.8	4.1	5.6%
Total equity and liabilities	937.4	961.8	24.4	2.6%
Net leverage ratio1	2.5x	2.0x
Net leverage ratio – pro-forma2	~ 2.1x	~ 1.9x

Note:

¹ Net leverage ratio = net financial debt / adj. EBITDA LTM. Net financial debt defined as principal amount of senior facilities less cash.

² Pro-forma, i.e. considering earnings of acquired companies. Adj. EBITDA LTM: €159.7m + €6.8m (1/4 of €27.0m) = €166.5m.

Cash flow overview and free cash flow (3M ended March 31, 2017)

Cash Flow Statement (€m)
	Q2 FY2016 Actual	Q2 FY2017 Actual	Change	% change
Cash flow from operating activities	31.1	28.3	(2.8)	(9.0)%
Cash flow from investing activities	(14.1)	(13.0)	1.1	(7.8)%
Cash flow from financing activities1	(4.1)	(17.5)	(13.4)	>100.0%
Net increase / (decrease) in cash	12.9	(2.1)	(15.0)	<(100.0)%
Effect of movements in exchange rates	(0.5)	0.4	0.9	<(100.0)%
Cash as of beginning of the period	33.8	69.7	35.9	>100.0%
Cash as of end of the period	46.1	68.0	21.9	47.5%

Free Cash Flow (€m)

	Q2 FY2016 Actual	Q2 FY2017 Actual	Change	% change
Cash flow from operating activities	31.1	28.3	(2.8)	(9.0)%
Cash flow from investing activities	(14.1)	(13.0)	1.1	(7.8)%
Free cash flow	17.0	15.3	(1.7)	(10.0)%
Payments for interest	(1.5)	(2.3)	(0.8)	53.3%
Free cash flow after interest payments	15.5	13.0	(2.5)	(16.1)%

Note:

¹ Cash flow from financing activities in Q2 FY2017 comprised €12.35m dividend payments (Q2 FY16: - ) and €2.5m payments for redemption of senior facilities (Q2 FY16: 2.5m).

Cash flow overview and free cash flow (6M ended March 31, 2017)

Cash Flow Statement (€m)
	H1 FY2016 Actual	H1 FY2017 Actual	Change	% change
Cash flow from operating activities	39.9	44.6	4.7	11.8%
Cash flow from investing activities	(27.5)	(22.5)	5.0	(18.2)%
Cash flow from financing activities1	(5.7)	(30.0)	(24.3)	>100.0%
Net increase / (decrease) in cash	6.7	(7.8)	(14.5)	<(100.0)%
Effect of movements in exchange rates	(0.1)	0.8	0.9	<(100.0)%
Cash as of beginning of the period	39.5	75.0	35.5	89.9%
Cash as of end of the period	46.1	68.0	21.9	47.5%

Free Cash Flow (€m)

	H1 FY2016 Actual	H1 FY2017 Actual	Change	% change
Cash flow from operating activities	39.9	44.6	4.7	11.8%
Cash flow from investing activities	(27.5)	(22.5)	5.0	(18.2)%
Free cash flow	12.4	22.1	9.7	78.2%
Payments for interest	(2.9)	(4.7)	(1.8)	62.1%
Free cash flow after interest payments	9.5	17.4	7.9	83.2%

Note:

¹ Cash flow from financing activities in H1 FY2017 comprised €12.35m dividend payments (H1 FY16: - ) and €12.5m payments for redemption of senior facilities (H1 FY16: 2.5m).

Revenue by region and customer market (3M ended March 31, 2017)

External revenue (€m)
	Q2 FY2016 Actual	Q2 FY2017 Actual	Change	% change
Automotive Gas Spring	36.7	41.3	4.6	12.5%
Automotive Powerise	21.7	27.4	5.7	26.3%
Industrial / Capital Goods1	28.0	36.8	8.8	31.4%
Vibration & Velocity Control	-	14.5	14.5	n/a
Commercial Furniture (former Swivel Chair)	6.7	6.2	(0.5)	(7.5)%
Europe	93.1	126.1	33.0	35.4%
Automotive Gas Spring	26.6	29.3	2.7	10.2%
Automotive Powerise	26.4	37.8	11.4	43.2%
Industrial / Capital Goods	13.9	15.7	1.8	12.9%
Vibration & Velocity Control	-	9.7	9.7	n/a
Commercial Furniture (former Swivel Chair)	1.1	1.3	0.2	18.2%
NAFTA	68.1	93.7	25.6	37.6%
Automotive Gas Spring	17.5	20.8	3.3	18.9%
Automotive Powerise	-	0.5	0.5	n/a
Industrial / Capital Goods	2.2	2.7	0.5	22.7%
Vibration & Velocity Control	-	1.1	1.1	n/a
Commercial Furniture (former Swivel Chair)	-	-	-	n/a
Asia / Pacific and RoW	19.7	25.0	5.3	26.9%
Total Automotive Gas Spring	80.9	91.5	10.6	13.1%
Total Automotive Powerise	48.2	65.6	17.4	36.1%
Total Industrial / Capital Goods1	44.0	55.1	11.1	25.2%
Total Vibration & Velocity Control	-	25.2	25.2	n/a
Total Commercial Furniture (former Swivel Chair)	7.8	7.5	(0.3)	(3.8)%
Total	180.9	244.9	64.0	35.4%

Note: ¹ In Q2 FY17 Industrial / Capital Goods revenue includes €6.4m revenue of Hahn Gasfedern (Q2 FY16: - ).

Revenue by region and customer market (6M ended March 31, 2017)

External revenue (€m)
	H1 FY2016 Actual	H1 FY2017 Actual	Change	% change
Automotive Gas Spring	69.6	75.0	5.4	7.8%
Automotive Powerise	39.2	49.0	9.8	25.0%
Industrial / Capital Goods1	52.3	66.6	14.3	27.3%
Vibration & Velocity Control	-	26.0	26.0	n/a
Commercial Furniture (former Swivel Chair)	12.4	11.8	(0.6)	(4.8)%
Europe	173.6	228.4	54.8	31.6%
Automotive Gas Spring	54.1	56.6	2.5	4.6%
Automotive Powerise	51.4	68.6	17.2	33.5%
Industrial / Capital Goods	27.5	29.3	1.8	6.5%
Vibration & Velocity Control	-	18.4	18.4	n/a
Commercial Furniture (former Swivel Chair)	2.3	2.5	0.2	8.7%
NAFTA	135.3	175.3	40.0	29.6%
Automotive Gas Spring	35.2	43.0	7.8	22.2%
Automotive Powerise	-	1.5	1.5	n/a
Industrial / Capital Goods	4.0	5.1	1.1	27.5%
Vibration & Velocity Control	-	2.3	2.3	n/a
Commercial Furniture (former Swivel Chair)	-	-	-	n/a
Asia / Pacific and RoW	39.3	51.8	12.5	31.8%
Total Automotive Gas Spring	159.0	174.7	15.7	9.9%
Total Automotive Powerise	90.7	119.0	28.3	31.2%
Total Industrial / Capital Goods1	83.7	100.9	17.2	20.5%
Total Vibration & Velocity Control	-	46.6	46.6	n/a
Total Commercial Furniture (former Swivel Chair)	14.8	14.3	(0.5)	(3.4)%
Total	348.2	455.5	107.3	30.8%

Note: ¹ In H1 FY17 Industrial / Capital Goods revenue includes €11.6m revenue of Hahn Gasfedern (H1 FY16: - ).

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